Free Authorize.net? You Got It!

Robb Lejuwaan — Wed, 27 Aug 2008 06:13:57 +0000

That’s right I, Robb Lejuwaan, have chosen to give away authorize.net for nothing! My company has been charging a small fee of $25 up to this point but I just realized with a free authorize.net account I make more money!! That’s right more money for me if I give you authorize.net for free. Here is a table that shows my original and new authorize.net fees:

Fees	Original Offer	Free Authorize.net
Setup Fee	$25	$0
Gateway Fee	$12.50	$15.95
Transaction Fee	$.05 after first 250 transactions	$.09 from the first transaction

So lets say you process 200 transactions a month and you keep your account for 12 months, how would these two offers differ?

Fees	Original Offer	Free Authorize.net
Setup Fee	$25	$0
Gateway Fees	$150	$191.40
Transaction Fees	$0	$216
Total Fees	$175	$407.40

See what I mean? If you take my free authorize.net offer I make an extra $232.40! The problem is you pay an extra $232.40.

So maybe you are wondering where I am coming up with the free authorize.net numbers. I’ll tell you where from – www.freeauthnet.com. Their gateway and transaction fees are right on their website.

You also may be wondering if I am being serious about offering free authorize.net and I am; however my transaction fee will stay the same as it was originally which is $.05 after the first 250 transactions. Yes the gateway fee will be the same as freeauthnet.com but I am paying the setup fee out of my own pocket so I need to make sure I at least break even. On the other hand, if you want my original offer you are free to choose that as well.

Oh there is one other thing you will not receive if you sign up for my “free” authorize.net account, that is a merchant account with hidden fees inside the famous tiers of “mid-qualified” and “non-qualified.” In other words we will set you up with a straight pass through merchant account.

I wrote this to show you that when the word “free” shows up in any marketing, at least in the merchant account industry, that is code for “your overall cost will be much higher than if you just paid for what you were receiving”. This applies to free terminals, gateways and anything else that has a real cost to it. So beware of the word “free” and use your brain to figure out what the real cost are. If you’re lazy and just want the easiest path to take, contact me and I’ll get you your stuff for free and I’ll let you know what “free” is going to really cost you.

Merchant Account Blog - Straight Pass Through » Gateway

Free Authorize.net? You Got It!

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